Notice to Members 02-32
SEC Approves NASD Rule Requiring Members to Require Investors to Sign a Disclosure Document as Part of a Subordinated Loan Agreement
On May 17, 2002, the Securities and Exchange Commission (SEC) approved a rule change requiring members to obtain a signed Subordination Agreement Investor Disclosure Document (Disclosure Document) from each investor before entering into a subordination agreement with that investor.
The Disclosure Document requirement, the text of which is provided in Attachment A, becomes effective on July 15, 2002.
Questions concerning this Notice may be directed to Susan DeMando, Director, Financial Operations, at (202) 728-8411, or Shirley H. Weiss, Associate General Counsel, at (202) 728-8844.